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Technology Stocks : CheckFree (CKFR) -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (4464)	5/22/1998 12:38:00 PM
From: Benny Baga	Read Replies (2) \| Respond to of 8545

>>>Were they going to sue them, or was that just a Tuna Story? That's no Tuna story. They sued, that's the fact Jack. Benny

To: TLindt who wrote (4464)	5/22/1998 12:40:00 PM
From: Benny Baga	Respond to of 8545

Another real (follow-up) news story: INTUIT, CHECKFREE -- Patent woes: Rivals aim to settle lawsuit By EDWARD F. MOLTZEN New York Lawyers for Intuit Inc. will spend the next several weeks negotiating with a top rival in the home bill-payment market, hoping to end a patent infringement case. Intuit, Menlo Park, Calif., and Checkfree Corp., Columbus, Ohio, decided late last month to try and settle Checkfree's three-and-a-half-month-old federal lawsuit. They asked a U.S. magistrate to adjourn the case until June 8, lawyers in the case told CRN. Checkfree claims a patent it won in January gives it the rights to technology linking PCs to electronic methods of paying bills. The dispute in federal court was put on hold "by order of the court, for reasons that related to ongoing efforts by the parties to resolve this issue without court intervention," said Edwin Baranowski, a lawyer for Checkfree. "The parties would like to chat," said David Slaby, a lawyer for Intuit. "We are exchanging documents informally. I think it is an intelligent choice by both sides." If Intuit settles the case, one key hurdle to developing a home-banking market would be removed. Intuit's development of that market, after a potential merger with Microsoft Corp., was listed as a chief concern of the U.S. Department of Justice when it sued in federal court last month to block the proposed merger of the two software companies. "[Microsoft's] acquisition [of Intuit] threatens harm to consumers in other important areas of commerce, especially the area of personal-computer-based home banking," the government wrote in its complaint in federal court. "Before the acquisition, Microsoft and Intuit had independent plans to compete in the field of electronic commerce." In fact, when Checkfree filed suit against Intuit in January, it released a "Q&A" that provided Checkfree's background, including rumors of Microsoft interest. "Q: There has been speculation about Microsoft buying Checkfree, how does this patent announcement [on the day the lawsuit was filed] affect that possibility? "A: We are forming a number of strategic alliances to strengthen this effort, including several partnerships that will be announced soon. We are not discussing or considering a sale," the company wrote. Checkfree officials have declined to say what "strategic alliances" are being formed but said they would be announced later in 1995. Intuit offers electronic bill payment via its National Payment Clearinghouse subsidiary to users of its personal finance software. It has also offered the service through Checkfree, but since it bought National Payment last year Intuit has been planning to let its contract with Checkfree expire this summer. Checkfree officials said their company processed $6 billion in payments last year for business and home clients and estimate processing another $9 billion during 1995. The privately held company lists The Tribune Co. of Chicago as one of its top institutional owners. "What we do is a one-and-only-type of service for easy bill payment with a bank on an electronic basis," said Michael Sapienza, Checkfree's vice president for marketing. "We believe [Intuit and NPC] are in violation of the patent." Intuit has yet to file a response to Checkfree's complaint in U.S. District Court in Columbus. William Lane, Intuit's chief financial officer, said the company will contest Checkfree's patent as invalid. Lane said even if the patent was valid, Intuit could find "work-arounds" or reach licensing agreements to use the technology. Sapienza said the home-banking market pie is split, essentially, three ways: Checkfree, a series of individual banks that offer home banking, and Microsoft via its Money personal finance application. Microsoft offers Money users electronic bill payment via National Payment. Just weeks after Intuit bought National Payment last year, Microsoft Corp. Chairman Bill Gates called Intuit Chairman Scott Cook to talk about a Microsoft-Intuit merger.